WORK has started on the world's biggest biofuels production complex at Seal Sands.

The Mayor of Stockton, Coun Jennie Beaumont, performed the ceremonial task of cutting the first sod at the Biofuels Corporation site on Tuesday.

The £21m plant will be capable of producing 250,000 tonnes of "green" biodiesel a year when it goes into operation early next year, employing about 45 direct staff.

Biofuels Corporation chief executive John Nicholas, said the company had chosen Teesside as its base because of its excellent transport links, well-developed chemicals infrastructure and skilled workforce.

"I think the best place in the world for such a plant would look a lot like this." he said.

He added that the corporation had also been impressed by the level of commitment shown by agencies such as One NorthEast, Teesside Chemical Initiative, Tees Valley Regeneration and Renew Tees Valley in bringing the plant to the area.

He said: "Their efforts have been a crucial factor in delivering a development which, as well as generating significant numbers of jobs both directly and through supply chain opportunities, will, I am sure, act as a catalyst for establishing this region at the forefront of biofuel and other renewable energy technologies."

The plant should be good news for local farmers, with Biofuels planning to procure nearly half its raw materials in the region.

"We are talking about the potential of getting up to 40pc of our requirement locally," said Mr Nicholas, "but this will depend on the development of an oilseed crusher on Teesside.

"We are working with people in the North-East to develop oilseed farming for industry use, and there is a project going through its feasibility study at the moment."

The first modules for the plant are being built in Austria and are expected to arrive at Seal Sands before Christmas.

The complex will serve markets in the UK and Europe, producing a fuel which can be mixed with ultra-low-sulphur diesel for use in standard and commercial vehicles.

Alan Clarke, chief executive of One NorthEast, said: "This facility will create high quality jobs and reinforces the North-East's drive to become the green fuel capital of the country."

Neil Etherington, strategic investment and marketing director with Tees Valley Regeneration and chairman of Renew Tees Valley, said the fact that Teesside would have the biggest biodiesel facility in the world would act as a major selling point in attracting further investment and jobs in renewable energy.

Ian Click, chief executive of the Teesside Chemical Initiative, praised Biofuels for its enterprise and drive in bringing about such a major investment and stressed the wider benefits.

He said: "It is particularly exciting because it also brings into Teesside a new category of chemical plant using renewable feedstocks.

"We hope this will open the possibilities for further developments of this type.

" It clearly shows how attractive Teesside is as a location for chemical investment and TCI is delighted to have assisted in the venture.